How to use this calculator
- Enter marginal propensity to consume, change in autonomous spending.
- Choose a display currency, then select Calculate. Results also update after a brief pause while you edit.
- Read the result with the assumptions below. Export details or save a second scenario to compare your choices.
Formula and method
Multiplier = 1/(1−MPC); output change = spending change × multiplier.
Assumptions and limitations
No taxes, imports, capacity limits, interest-rate response or time dynamics are included.
Worked example
With marginal propensity to consume = 0.8, change in autonomous spending = 100, simple multiplier is approximately 5.
What the result means
The result isolates the recycling of spending in a simplified model.
Common questions
How should I interpret simple multiplier?
The result isolates the recycling of spending in a simplified model.
What should I check before using this result?
No taxes, imports, capacity limits, interest-rate response or time dynamics are included.
Methodology and transparency
Calculation specification reviewed on 2026-10-14. Mathematical implementation is tested against independent reference fixtures. This does not imply review by a licensed financial professional. Read the testing and precision policy.